The offer of $13.25 a share is 36 percent more than Stewart
Enterprises’ closing price yesterday. The acquisition has been
approved by the boards of both companies, according to a
statement today.

Stewart Enterprises, founded in 1910, runs funeral homes in
24 states and employs about 5,000 people, according to its
website. The combination is expected to have pro forma revenue
of almost $3 billion and generate about $60 million in annual
cost savings, the companies said today.

Service Corp. had tried and failed to buy Jefferson,
Louisiana-based Stewart Enterprises in 2008 for $11 a share. The
latter company rejected the deal and Service Corp. withdrew its
offer after the two sides couldn’t agree on financing and price.

100 Years

“Throughout its 100 year history and for the last five
decades of Frank Stewart’s tremendous leadership, Stewart
Enterprises has compiled an impressive portfolio of high quality
funeral homes and cemeteries across North America,” Tom Ryan,
Service Corp.’s chief executive officer, said in the statement.

Stewart Enterprises rose 33 percent to $12.97 at the close
in New York. The shares had advanced 27 percent this year before
today. Service Corp., based in Houston, gained 4.7 percent to
$18.44.

Service Corp. owned and operated 1,437 funeral homes and
374 cemeteries in 43 states as of March 31, according to the
statement. Service Corp. anticipates completing the transaction
late this year or early in 2014, pending antitrust and
shareholder approval, according to the statement.

JPMorgan Chase & Co. is providing financing and advice to
Service Corp. on the transaction. Shearman & Sterling LLP is the
company’s legal adviser.